Morning Bells (23 Oct 13)

Good Morning Friends.

If you tell the truth, it becomes a part of your past, but if you lie it becomes part of your future. So choice is yours.

So once again I am enjoying this range, as discussed 6230-40 would act as resistance and Nifty is finding hard to cross it, secondly momentum is on buying side (specially in beaten down stocks, small to mid caps) keeping Nifty alive. So here I would again suggest trade with our suggested range and make good money.

Some positive buying is seen is power, PSU, IT, Teck and capital goods sectors, while consumer durables, auto, oil & gas and healthcare sectors are losing on BSE.

Domestic Front –

In a good step, to allow investors make informed decisions, SEBI (Securities and Exchange Board of India) on Monday asked companies and other entities acquiring substantial shares in listed companies to make additional disclosures regarding pledging of scrips.

RBI Policy view –

An industry poll conducted by RBS India today said majority participants are expecting RBI Governor Raghuram Rajan to hike the key policy rates by at least 0.25 percent next week when he unveils the second quarter review of Monetary Policy 2013-14.

"More than 55 percent of the respondents are expecting a 25 bps hike in the repo rate in this policy cycle, and a similar hike in the reverse repo rate as well," RBS India said in a pre-policy survey. The RBS client survey covered 150 local market participants, including corporate clients, banks, insurance companies and mutual funds among others and 56 percent of the responses came in from corporate clientele and rest from financial institutions.

So once again banking stock will be in limelight next week where we may see some pressure in banking and rate sensitive stocks on believe of above statement.

MARKET OUTLOOK –

Today Nifty was also in consolidation mode and I hope that its preparing ground to move up further. After breaching 6230 it seems to make a new high, though I am a bit cautious around 6300 or say above 6230. 6020 & 5980 will find good support in this series (in case of a fall)

Why I was bullish and still think there is steam left because till now (even today Wipro, Cairn & Yes Bank) Q2 earnings so far have been good and FII inflow is intact i.e. FII still buying, interestingly what they had sold in Aug-Sept now they are buying.

Yes but here onward it would be difficult to climb in one go, reason is simple as Nifty is inching towards higher levels profit booking as well as fear for a correction is in mind of investors so they are now not buying with free hands, they are approaching cautious move.

MG’s Nifty trading range –

R – 6240 – 6290 - 6350

S – 6160 - 6120 – 6070- 6020 - 5980

ECONOMIC EVENTS / RESULT CALENDAR –

23 Oct – Result – ACC, Ambuja Cement, Dish TV, Hero Moto, Power Grid

24 Oct – Result – Arvind, Idea, Kotak Mahindra

25 Oct – Result – Adani Ports, Adani Power, Gail, ICICI, IDBI, IOB, ITC

26 Oct – Result – HUL, JSW Energy,

28 Oct – Result – Dabur, JSW, Maruti, VIP

29 Oct – Result – JSW Steel, Sriram Transport, Tata Comm, Welspun Corp

OI Activity –

OI Gainer - Adani Ports (38%), Sun TV (24%), India Bulls Real Estate (21%), Dabur (19%) and Exide Industries (19%)

OI Loser - Opto Circuits (-14%), Punj Lloyd (-7%), Asian Paints (-7%) and Bank of India (-7%)

STOCK OUTLOOK -

(Stock that can see some good moves either side)

IBR –

Indiabulls Real Estate gained 6.29% on BSE on the news that the company has declared a second Interim dividend of Re. 1 per equity share (on the face value of Rs. 2 per share) for the financial year 2013-14.

Tata Steel –

Tata Steel has bagged a new contract to supply Britain's Network Rail with more than 95% of its rails for at least five years, according to reports.

Media reports said that the company could supply more than 1 million tonnes of rail under the contract.

The company's Scunthorpe plant, which produces steel for construction and infrastructure, is the current supplier to Network Rail.

Wipro –

Ltd has posted results for the second quarter ended 30th September, 2013. The net profit for the quarter stood at Rs19.32bn. Its net sales for Q2 stands at Rs109.90bn.

Total Income has increased from Rs. 95280 mn for the quarter ended September 30, 2012 to Rs. 113319 mn for the quarter ended September 30, 2013.

Cairn India –

Has posted results for the second quarter ended 30th September, 2013. The net profit for the quarter stood at Rs33.80bn. While, net sales for Q2 stood at Rs46.50bn.Its Q2 forex gain was at Rs4.29bn.

The company announced that the Board of Directors of the Company at its meeting held on October 22, 2013,  has declared an Interim Dividend of INR 6/- per Equity Share for the financial year 2013-14. The Interim Dividend will be paid to shareholders on or before November 12, 2013.

Hero Moto –

Q2 Nos. are today, analysts expect an unimpressive performance during the quarter, growth will be marginal given the slowdown in the sector.

MBC PL –

Oct PL = -1000 + 250 = -750 – 1250 = -2K

Open Call –

Ashokley 17.5CE @0.7 SL Hold/0.45 TG- 18.5 in Cash

Regarding MBC calls –

I know some of you have made some loss on past 2-3 calls, here I would like to say that mostly I do swing trade so even if 3-4 calls hit SL need not to worry because 1 or 2 jackpot calls will recover all your losses and again you will be in handsome profit. But you just need to follow MBC calls because we don’t know in which bag jackpot is. Secondly you also need patience else we may burn fingers.

============ Join MG on FaceBook ============

For live market commentary & stock advice you can join MG on FaceBook.

FB Page – www.facebook.com/mudraguru.india

(Please PM for membership fee after sending request)